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1. Management Structure<br />

• OOO Geokomp — conducts geological surveys and exploration for<br />

nickel and copper porphyry in the south of Central Siberia;<br />

• OOO Intergeoproject — provides advisory services to the Group both<br />

in Russia and abroad on determining the prospects of minerals, acquisition<br />

and analysis of the collected geological information;<br />

• OOO Kingashskaya GRK — holds four licenses for geological exploration<br />

and production of platinum-copper-nickel ores in Krasnoyarsk<br />

Region;<br />

• OOO GRK Gremyakha — holds license for Gremyakha Vyrmes deposit<br />

in the Murmansk Region;<br />

• OOO GRK Bystrinskoye — holds licenses for Bystrinskoye, Kultuminskoye,<br />

Lugokanskoye and Solonechenskoye deposits in the southeast<br />

of the Zabaikalsky Region;<br />

• OOO Bugdainsky Rudnik — holds license for Bugdainskoye deposit.<br />

ENERGY BUSINESS UNIT<br />

The Energy business unit secures energy supplies for the Group and<br />

the Norilsk industrial and Taimyr (Dolgano-Nenets) municipal districts,<br />

and manages other energy assets of the Group.<br />

Due to the absence of alternative energy suppliers in the region, this<br />

business unit provides a complete cycle of energy supply services in<br />

the Norilsk industrial district.<br />

The Energy business unit includes the following entities:<br />

• Norilskenergo Branch — operates three thermal power plants (TPP-1,<br />

TPP-2, TPP-3) in the Taimyr Peninsula and supplies electricity to the<br />

mining operations of the Group in the Taimyr Peninsula. Norilskenergo<br />

power plants operate on gas which they receive from OJSC Taimyrgaz<br />

and OJSC Norilskgazprom;<br />

• OJSC Taimyrenergo — operates two hydropower plants (Ust-<br />

Khantaiskaya HPP and Kureiskaya HPP);<br />

• OJSC NTEC — generates and supplies thermal and electric power<br />

to consumers at assets leased from OJSC Taimyrenergo and OJSC<br />

Norilskenergo;<br />

• OJSC Taimyrgaz — holds license for development of the Pelyatka gas<br />

condensate deposit;<br />

• OJSC Norilskgazprom — has licenses for development of the Severo-<br />

Soleninskoye and Yuzhno-Soleninskoye gas condensate deposits<br />

and the Messoyakhskoye gas deposit.<br />

In addition, Norilsk Nickel has a majority stake in OGK-3, a power<br />

generation company operating six power plants: Kostromskaya GRES,<br />

Cherepetskaya GRES, Pecherskaya GRES, Gusinoozerskaya GRES,<br />

Kharanorskaya GRES and Yuzhnouralskaya GRES.<br />

TRANSPORTATION AND LOGISTICS BUSINESS UNIT<br />

The Transportation and logistics business unit is responsible for<br />

transporting the Company’s cargo by sea, river, rail, road and air,<br />

handling cargo in sea and river ports, storing cargo and overseeing<br />

customs clearance, as well as transportation of passengers and cargo<br />

on domestic airlines.<br />

The Transportation and logistics business unit includes the following<br />

entities:<br />

• Polar Transportation Branch — is involved in receiving and operating<br />

sea and river vessels, loading works, transportation services, freight<br />

transportation, storage and customs clearance of cargo in Norilsk;<br />

• Murmansk Transportation Branch — is involved in rendering transportation<br />

services to the Group and third parties;<br />

• Krasnoyarsk Branch — is involved in rendering transportation services<br />

to the Group and third parties with regard to cargo transported<br />

via the Yenisei River;<br />

• Arkhangelsk Branch — is involved in rendering transportation services<br />

to the Group and third parties with regard to coastal floating<br />

cargoes transported in the Dudinka direction;<br />

• OJSC Arkhangelsk Commercial Sea Port — is engaged in receiving<br />

and operating sea and river vessels, loading works, transportation<br />

and freight services;<br />

• OJSC Yenisei River Shipping Company — is engaged in receiving<br />

and operating river vessels, loading works, transportation and freight<br />

services;<br />

• OOO Norilsk Airport — renders airport on-ground services;<br />

• OJSC Taimyr Airlines — is involved in cargo and passenger transportation;<br />

• Norilsk Nickel Logistics B.V. — is a logistics office in Rotterdam,<br />

Netherlands.<br />

In total the Group has more than 480 fleet units: container carriers,<br />

bulk-carriers, towboats, tankers, barges, crane ships, icebreakers,<br />

icebreaking boats and other equipment. The Group’s Transportation<br />

and logistics business unit employs more than 8,000 people.<br />

In the reporting period, the Group completed construction of proprietary<br />

Arctic fleet consisting of five diesel-electric ships with icebreaking<br />

facilities complying with class ARC 7, classification PMPC, and<br />

equipped with Azipod double-action propellers capable of breaking<br />

the ice up to 1.5 meters thick. The vessels have a freight-carrying capacity<br />

of more than 15,000 tonnes and container capacity of 571 TEU.<br />

In 2009, the Company’s cargo turnover was approximately 3 million<br />

tonnes. In aggregate on all routes, the Company’s vessels performed<br />

57 round trips and transported about 1 million tonnes of various<br />

23

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